The Financial Post reports that the price of gold rose 2% today, reaching a record high of US$1,270 an ounce. This biggest one-day gain in four months was attributed to “investors s[eeking] shelter from economic uncertainty and fle[eing] the US dollar.”
Another factor cited for the record high and gold’s 16% increase in 2010 was the belief that more stimulus is needed to jump start a possibly-stalled recovery. According to Tom Kendall of Credit Suisse, “There is a lot of volatility and reaction to data … people are looking for that defensive asset. Equity markets just remain very, very lacking in confidence, no one is prepared to put positions on and stick with them for any length of time.”
In further precious-metals news, silver reached a 30-month high of US$20.41 an ounce, up $0.39 from Monday.